GST on Insurance claim received

[Sharmila P]

I am a registered person under GST. My goods were lost by fire. With regard to this, I received an insurance claim from the insurer. Should i charge GST on the claim received by me from the insurer? what are input tax credit implications if i have availed ITC on the premium paid?

[CASusheel Gupta]

1) You need to reverse the ITC taken on goods destroyed.

2) No need to charge GST on claim received

3) ITC on premium paid can be availed.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Sri Susherl.

AI Summary

GST on insurance claim: insurance proceeds for destroyed goods are non-taxable, but reversal of ITC on destroyed goods is required.
Insurance proceeds for goods lost by fire are not treated as a taxable supply and no GST is charged on the claim; however, the registered person must reverse input tax credit already availed on the destroyed goods, while ITC on the insurance premium paid may be claimed subject to standard eligibility conditions.